Marcus rented some scaffolding to aid in replacing the siding of his house. This type of lease would be referred to as
A) a capital lease.
B) a functioning lease.
C) a security lease.
D) an operating lease.
E) a performing lease.

Question

Quizplus · Accepted Answer

An operating lease is a type of lease where the lessor (the owner of the asset) allows the lessee (the user of the asset) to use the asset (in this case, the scaffolding) for a limited period of time without transferring ownership. This type of lease is commonly used for assets that have a short useful life or are needed for a specific project, like in Marcus's case.

Marcus Rented Some Scaffolding to Aid in Replacing the Siding